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Chapter-3
Market Oriented Strategic Planning
CHAPTER 3.
MARKET ORIENTED STRATEGIC PLANNING.
Market oriented strategic planning is the managerial process o de!eloping "
maintaining a !ia#le it #et$een an organi%ation o#&ecti!es' skills' reso(rces and its changingmarket opport(nities.
Aim: Shape' Reshape companies #(siness " prod(cts so that the) )ield targeted proits and
gro$ths.
Strategic Planning has Action Areas.
- Managing companies #(siness as an in!estment portolio.
- Assessing each #(siness acti!it) #) considering market*s gro$th rate " companies
position " it in that market.
- +e!eloping a strateg),game plan to achie!e long r(n o#&ecti!es.
Strategic Planning takes into acco(nt that large organi%ations consist o o(r organi%ational
le!els.
- Corporate le!el.
- +i!isional le!el.
- (siness (nit le!el.
- Prod(ct le!el.
CORPORATE DIVISIONAL BUSINESS PRODUCT BRAND
LEVEL LEVEL LEVEL LEVEL LEVEL
SC A/A/ A0TO 1T+.-------------------2 H1R------SCT P
A/A/ A0TO 456A6CE 1T+. 3 H1R M'C-------
AA/ E1ECTR5CA1S. A
A/A/ SE7ASHRAM
A/A/888888888888-----------------
----------------------
----------------------
---------------------------
A/A/ A115A69
Corporate H: creates strategic plan to g(ide the $hole enterprise to a proita#le(t(re.
Each di!ision creates a di!isional plan co!ering the allocation o (nds to each
#(siness (nit $ithin di!ision.
Each #(siness (nit de!elop a #(siness (nit strategic plan to carr) that #(siness to a
proita#le (t(re.
Each prod(ct le!el de!elops a marketing plan to achie!e its o#&ecti!e. 5n its prod(ct
marketing.
Marketing plan made (p o
o Strategic Marketing Plan.
o Tactical Marketing Plan.
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Chapter-3
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Strategic Marketing Plan de!elops ' o(tlines.
- road marketing o#&ecti!e.
- Strateg) #ased on anal)sis o c(rrent market sit(ation and opport(nities ,#ased on STP.
Tactical Marketing Plan o(tlines speciic marketing plan. 5t ma) incl(de- Ad!ertising
- Merchandising
- Pricing
- Channels ,< P*s o Marketing.
Nature of High Performing Business=
- Model proposed #) Arth(r +. 1ittle ,cons(lting irm.
- 4o(r ke) s(ccess actors Stakeholders
- Processes
- Reso(rces
- Organisation.
>Set strategies to satis) ke) stakeholders #) impro!ing critical #(siness and aligningreso(rces " organi%ing?.
Stakeholders=
- Stock holders
- C(stomers
- Emplo)ees
- S(ppliers
- +istri#(tors.
(siness m(st stri!e to satis) threshold e@pectation o each stakeholders gro(p.
Stakeholders gro(p are inter related d)namicall).
Processes=
- A compan) can accomplish its satisaction goals onl) #) managing " linking $ork
processes.
- Traditionall) compan) $ork carried o(t in departments. This ma) create pro#lems.
Hence oc(s sho(ld #e on core #(siness processes s(ch as
o 6e$ prod(ct de!elopment.
o Sales generation.
o Order (lillment.
Cross (nctional team created or each processes.
S
P
R O
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Chapter-3
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Resources=
- To carr) o(t processes compan) needs reso(rces.
Reso(rces co(ld #e - 1a#o(r' People.
- Materials.
- Machine- 5normation
- Energ).
Reso(rces ma) #e - O$ned
- 1eased
- Rented.
- Earlier companies $o(ld tr) to o$n most reso(rces.
- Toda) companies o(tso(rce less critical reso(rces i this gi!es increased B(alit) " cost
red(ction.
Ora!i"atio!=
Organi%ation consists o Companies Str(ct(res
- Companies policies
- Companies c(lt(re.
5n changing market sit(ation compan) sho(ld #e a#le to change' adapt organi%ation.
CORPORATE STRATEGIC PLANNING= , Corporate' +i!isinal.
Acti!ities to #e (ndertaken - +eine corporate di!ision.
- Esta#lishing S0*s.
- Assigning reso(rces to each S0.
- Planning ne$ #(siness.
Defining Corporate Mission=
- An organi%ation e@ists to accomplish something. This is its speciic mission' p(rpose.
- Compan)*s mission shaped #)
- Histor) ,o Aims' policies' Achie!ements.
- C(rrent preerences o o$ners' management.
- Market en!ironment.
- Reso(rces ,Mission sho(ld #e achie!a#le.
- +istincti!e competencies ,compan) sho(ld #ase its mission on $hat it does#est.
- 4(ndamentals B(estions to #e asked
- hat is o(r #(sinessD
- ho is the c(stomerD
- hat is the !al(e to c(stomerD
- hat $ill' sho(ld o(r #(siness #eD
- ood mission statement has three characteristic.
- 4oc(s on limited n(m#er o goods.
- Stress policies' !al(es that compan) $ants to hono(r.
- +eine ma&or competiti!e scopes $ithin $hich the compan) $o(ld operate.
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Chapter-3
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eg.- a&a& A(to 1imited.
- 4oc(ses on 2- $heeler " 3- $heeler ,limited goods.
- Polic) is >$hiche!er prod(ct $e make m(st #e cheapest in that segment?.
Competiti!e scopes incl(de - 5nd(str) scope- Prod(ct' Application scope
- Competence scope
- Market segment scope
- !ertical scope
- geographical scope.
Establishing SBUs=
- Companies oten deine their #(siness in terms o prod(ct. eg.- A(to #(siness.
- Market deinition o #(siness ma) #e #etter i.e. #(sinesss !ie$ed as c(stomer satis)ing
process rather than goods prod(cing process.
- (siness ma) #e deined (sing three dimension- C(stomer gro(p.
- C(stomer needs
- Technolog).
Eg.- small sot$are compan) de!eloping application sot$are or co-operati!e #anks.
C(stomer gro(p - Co-operati!e #ank.
C(stomer need - Transaction processing.
Technolog) - Application Sot$are platorm.
This compan) ma) e@pand ater sometime. 4or this it co(ld redeine an) o the dimensions
o c(rrent #(siness (nit.
To Assign Resoures to eah SBUs=
- P(rpose o identi)ing each S0 is to de!elop separate strategies " assign appropriate
reso(rces.
- (siness portolio ma) incl(de
- 4(t(re $inners
- Past champions
- C(rrent #read $inners.
- To go #e)ond impressions one needs anal)tical tools to classi) each S0 #ased on its
proit potential.
Anal)tical tools co(ld #e=- C Model ,ro$th Share matri@.
- E Model ,M(ltiactor Portolio Matri@.
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BCG Growth Share Matrix=
COMPANY MARKET
SHARE
MARKET SHARE OF
MARKET LEADER
ANNUAL MARKET
GROWTH RATE
D A1 3FG
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o eca(se it $ants to o!ertake leader in market.
Star=
- Star is a market leader in a high gro$th market.
- A s(ccess(l B(estion mark #ecomes a star
- Compan) ma) need to spend
o To keep (p $ith the high market gro$tho To ight competition
- Hence stars ma) not necessaril) prod(ce a lot o mone) to compan).
Cash Co#=
- hen a markets ann(al gro$th rate alls #elo$ ;JG a star #ecomes a cash co$ i it still
has the largest relati!e market share.
- 5n!estment in Plant' EB(ipment is not reB(ired.
- eing market leader #(siness en&o)s scale economics " higher proit margin.
- Hence cash co$ generates mone) or compan).
Dogs=
- +ogs ha!e $eak market shares in a lo$ gro$th market.
- enerates lo$ Proit' 1oses.
- Ma) generate some cash.
- Oten cons(mes lot o management time.
- Compan) sho(ld hold on to dogs i
o T(rnaro(nd in market gro$th rate is e@pected.
o Chances or market leadership e@ists.
- Sentimental reasons sho(ld #e a!oided.
Each S0 is plotted on the -S Matri@. Then compan) can determine $hether its portolio is health). Portolio is (n#alanced
i
o +ogs' :(estion marks are too man).
o Stars' Cash co$s are too e$.
Each S0*s can no$ #e assigned
o O#&ecti!e.
o Strateg) to (lill o#&ecti!es.
o Reso(rces' (dgets to implement strateg).
Strategies co(ld #eo (ild
o Hold
o Har!est
o +i!est
Build=
- O#&ecti!e is to increase market share o S0
- At times short term earnings ma) #e orgone to (lill this o#&ecti!e.
- ood strateg) or B(estion mark $hen market share m(st increase i the) are to #ecome
stars.
- Ma) also #e (sed or stars in certain sit(ation.
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#old=
- O#&ecti!e is to preser!e S0*s market share.
- Appropriate or cash co$s $ho are strong i the) are to contin(e )ielding cash.
#ar$est=
- O#&ecti!e is to increase S0*s short term cash lo$ regardless o long term eect.
- S(ita#le or $eak cash co$s.
- Also (sed at times or B(estion mark " dogs.
Di$est=
- O#&ecti!e is to Sell' 1iB(idate the #(siness #eca(se reso(rces can #e #etter (sed
else$here.
- S(ita#le or +ogs' :(estion marks that are acting as a drag on companies proits.
NOTE= As time passes S0*s change their position in the gro$th share matri@ eg.- B(estion
mark star cash co$ dog.
Hence companies sho(ld e@amine not onl) c(rrent position o S0 #(t also its
mo!ing position ,histor) " (t(re.
Reso(rce allocation' Strateg) planning to #e done #ased on a#o!e.
$eneral Eletri $ro#th%Share Matri&=,M(ltiactor Portolio Matri@.
- S0*s appropriate o#tain needs to take into acco(nt
o Market attracti!eness
o (siness strength.
O!er and a#o!e it*s position in the -S Matri@.
Loic=
Har!est line
+i!est line
Har!est
+i!est
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MARNET
ATTARCT57E6ESS
5' L 567EST' RO
S'E L SE1ECT575T "
EAR656
H'+ L HAR7EST "
+57EST
0S56ESS STRE6TH
Chapter-3
Market Oriented Strategic Planning
- Companies are s(ccess(l to the e@tent that the) enter attracti!e markets " posses
reB(ired #(siness strengths to s(cceed in the markets.
- 6either a strong compan) in an (nattracti!e market nor a $eak compan) in an attracti!e
market $ill do $ell.
To meas(re this t$o dimension strategic planners need to identi) the actors (nderl)ingeach dimension " ind a $a) to meas(re them " com#ine them into an idea.
U!er"#i$ Fa%toria" & Wei$ht'=
Mar(et Attra%ti)ee''=
eightage a&a& A(to 1td. eighted A!g.;. O!erall Market Si%e J.2J
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2. Ann(al Market ro$th Rate J.2J
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,A;'A2 L ,3.
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Market Oriented Strategic Planning
- Concentrate in!estments in segments $here proita#ilit) is good " risk are relati!el)
1o$.
,IBuild Selecti$el%=
- Speciali%e aro(nd limited strengths.
- Seek $a)s to o!ercome $eakness.
- ithdra$ i indications o s(staina#ilit) gro$th are lacking.,)a!ae 'or Ear!i!s=
- Protect position in most proita#le segments.
- 0pgrade prod(ct line.
- Minimi%e in!estment.
,FLimited E*+a!sio! ( #ar$est=
- 1ook or $a)s to e@pand $ithin high risk.
- Minimi%e in!estment " Rationali%e operations.
,Di$est=
- Sell at time that $ill ma@imi%e cash !al(e.
- C(t i@ed costs " a!oid in!estments mean$hile.
O!erall once o#&ecti!es " #(dgets are set or a S0 marketing needs to carr) o(t
plan eicientl) " proita#l).
Criti,ue of Portfolio mo(els=
Be!e'its=
- Helps managers think strategicall) ' (nderstand #(siness #etter.
- 5mpro!es strateg) plan B(alit).
Pit'alls=
- 6eed to #e (sed $ith (nderstanding. At times oc(s too m(ch on high gro$th #(siness
$hich ma) lead to neglect o c(rrent #(siness.
- Ratings and $eights can #e manip(lated to prod(ce desired location on matri@.
- At times (sers ma) a!erage o(t ratings. 5n s(ch cases S0*s remain in the central part
o the matri@ leading to am#ig(o(s interpretation.
- Models ail to delineate s)nergies #et$een t$o or more #(sinesses. A losing #(siness
ma) pro!ide a core competenc) or a $inning #(siness.
O$erall=
- Portolio Models ha!e pro!ided insight " helped to impro!e managerial anal)tical "
strategic capa#ilities.- 4acilitated #etter decision making than mere impression.
Planning Ne# Business=
- Compan)*s plans or e@isting #(siness allo$ it to pro&ect total sales' proits o!er time
period.
- 5 pro&ected sales " proits are less than $hat corporate' management desires there is a
gap in the strategic plan.
- This gap co(ld #e illed #) de!eloping' acB(iring ne$ #(siness.
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- Options to ill strategic planning gap co(ld #eo 5ntensi!e gro$th opport(nities.
o 5ntegrati!e gro$th opport(nities
o +i!ersiication gro$th opport(nities.
-ntensi.e $ro#th /pportunities=
- There are opport(nities to achie!e (rther gro$th $ithin the compan)*s c(rrent #(siness.
- 6ormall) irst co(rse o action or gro$th.
- To detect ne$ intensi!e gro$th opport(nities (se A6SO44*s prod(ct or market
e@pansion grid.
O+tio!: ,- . )arket Pe!etratio! Strate%.
- Tr) to gain more market share $ith c(rrent prod(cts in c(rrent market.
- Approaches=
o Enco(rage c(rrent c(stomer to #() more per period #) increased (sage rate or
sho$ing additional (ses. Eg= r(shing $ith Colgate dental cream t$ice
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Chapter-3
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o Attract c(stomers rom $eaker competition ,+etect $eakness in competition
C(stomer +eli!ered 7al(e. Eg= Colgate capt(ring market o 4orhans.
o Enco(rage non (sers to start (sing. ,$orks id non (ser gro(p is large.
Eg= Colgate dental cream campaign in r(ral market especiall) or children.
O+tio!: /- . )arket De$elo+me!t Strate%.- 1ook or ne$ markets $hose needs ma) #e met #) c(rrent prod(cts.
- Approaches=
o 5 c(rrent market is in retail,indi!id(al c(stomer look at instit(tional
markets,gro(ps. Eg= Nahalgaon 6TPC Hero-Honda in Ang(l Orissa.
o Seek additional distri#(tion channels. Eg= CS+ s(pplies +,s(pplies "
distri#(tion
o Seek additional geographical market. Eg= All geographical location.
O+tio!: 0- . Product De$elo+me!t Strate%.
- 5n!ol!es de!elopment o ne$'additional prod(cts or eat(res to deli!er s(perior C+7.Eg= +ierent t)pes o handles a!aila#le in #ikes.
- Categori%e c(stomer into gro(ps and oer dierent C+7 to dierent gro(ps at dierent
prices.
- 0se technolog) to alter prod(ct satis)ing same' similar c(stomer need' $ant. Eg=
comp(ters desktops laptopsQ
-ntegrati.e $ro#th /pportunit0=
- 5ncrease sales' proits thro(gh integration $ithin ind(str).
- 5ntegration co(ld #e=
o ack$ard ,+e!elop' AcB(ire s(pplier.
o 4or$ard ,+e!elop' AcB(ire hole seller' Retailer.o Hori%ontal ,AcB(ire competitor $ith go!ernment appro!al.
Eg= A motor man(act(ring compan) ma) acB(ire copper $ire actor) ,ack$ard.
6e@t step it ma) !ent(re into an man(act(ring ,4or$ard. Apart rom that it ma)
also acB(ire competitor*s motor man(act(ring (nit ,Hori%ontal.
Di.ersifiation $ro#th opportunities=
- Makes sense $hen good opport(nit) can #e o(nd o(tside present #(siness.
o ood opport(nit) - 5nd(str) is highl) attracti!e.
- Compan) has #(siness strategic reB(ired to #e s(ccess(l.
+i!ersiication co(ld #e=
-;- Concentric +i!ersiication=
- 6e$ prod(cts that ha!e technical marketing s)nergies $ith e@isting prod(ct line.
- 6e$ prod(ct ma) appeal to a dierent c(stomer gro(p.
Eg= a&a& scooter to motorc)cle.
-2- Hori%ontal +i!ersiication=
- 6e$ prod(cts that co(ld appeal to its c(rrent c(stomer e!en tho(gh ne$ prod(cts
are technologicall) (nrelated to its c(rrent prod(cts. Eg=- a&a& A(to to a&a& A(to
4inance.
-3- Conglomerate +i!ersiication=
- 6e$ #(siness that ha!e no relationship to compan)*s c(rrent technolog)' Prod(cts
" Markets. Eg=- a&a& A(to to a&a& Allian%.
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6ote=
- To p(rs(e gro$th companies need to not onl) de!elop' acB(ire ne$ #(siness #(t also
care(ll) di!est $eak old #(siness to release needed reso(rces to red(ce costs.
- +o$nsi%ing co(ld #e done thro(gh
o Preening= Remo!ing (nproita#le' dead' d)ing parts o #(siness to increase
perormance.o Har!est= As disc(ssed earlier.
o +i!est= As disc(ssed earlier.
BUSINESS STRATEGIC PLANNING +BSP,-- Once Corporate' +i!ision strategic plan is de!eloped a clear strategic plan or each
indi!id(al S0 needs to #e dra$n.
Proced(re or SP=
0S56ESS M5SS5O6
EKTER6A1 E675RO6ME6T 56TER6A1 E675RO6ME6T
OA1 4ORM01AT5O6
STRATE 4ORM01AT5O6
PRORAM 4ORM01AT5O6
5MP1EME6TAT5O6
BUSINESS MISSION=
- Speciic mission $ithin #roader corporate mission need to #e o(tlined.
- Process=
o 4oc(s on speciic o#&ecti!es in terms o
C(stomer gro(ps. E@=- 5ncome categories.
C(stomers needs. E@=- Prod(ct categori%ation.
Technolog). E@=- Technolog) le!els.
E&ternal En.ironment Anal0sis=- Once the #(siness Mission is orm(lated the #(siness en!ironment emerges $ith clarit).
This #(siness en!ironment needs to #e monitored or Operations' Threats.
- 5n general #(siness (nit needs to monitor
o Macro Economic 4orces ,+emographic' Economic' Technological' 1egal' Social'
C(lt(ral' Political.
o Micro En!ironment Actors ,C(stomers' Competitor' +istri#(tion Channel'
S(pplier.
o Marketing 5ntelligence s)stem needs to #e set (p to monitor Trends'
de!elopment.
4or each de!elopment or change in trend opport(nities and threats need to #e
identiied.
4EE+ACN
A6+
CO6TRO1
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Attracti!eness
O++ortu!ities= H5 1O
- Marketing opport(nities is an area o #()er need in H5
$hich a compan) can perorm proita#l).
- Opport(nit) classiied according to= S0CCESS
- Attracti!eness o Opport(nities. 1O- Pro#a#ilit) o S(ccess.
Threats=
- +e!elopment in e@ternal en!ironment.
- An en!ironmental threat is a challenge posed #) an (na!o(ra#le trend or de!elopment
that $o(ld lead in the a#sence o deensi!e marketing action to red(ction in Sales'
Proit.
- Threats can #e classiied as=
o Serio(sness.
o Pro#a#ilit) o occ(rrence.
SER5O0S6ESS
Contingenc) H5 1O
Plan
H5
OCC0RA6CE
PROA515T
1O
- ased on a#o!e #(sinesses o!erall attracti!eness ma) #e categori%ed as
o 5deal (siness= High Opport(nit)' 1o$ Threats.
o Spec(lati!e (siness= High Opport(nit)' High Threats.
o Mat(re (siness= 1o$ Opport(nit)' 1o$ Threats.
o Tro(#led (siness= 1o$ Opport(nit)' High Threats.
-nternal En.ironment Anal0sis=
- 5denti)ing #(siness attracti!eness are not adeB(ate. (siness needs to ha!e rele!antcompetencies.
- Hence Strength' eakness need to #e e!al(ated periodicall).
Checklist 'or Stre!ths( 1eak!esses=
Competenc) Perormance 5mportance
Ma&or
Strength
Minor
Strength
6e(tral Ma&or
eakness
Ma&or
eakness
Hi Med 1o
+A,Mar(eti$
Fa%tor'
; Compan)
Spec(lati!e
(siness
Tro(#led
(siness
5deal
(siness
Mat(re
(siness
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Rep(tation
2 Market
Share
3 Prod(ct
:(alit)
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Emplo)ees
3
Entreprene(rial
Orientation
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o +ierentiation.
o 4oc(s.
O!erall cost leadership=
- Achie!e lo$er prod(ction and distri#(tion costs.
- Price lo$er than competitor and $inning increases market share.
4or this #(siness (nit m(st #e good' #etter than competitors at
- Engineering - man(act(ring
- P(rchasing - ph)sical distri#(tion
- Pro#lem co(ld #e the emergence o other irms $ith e!en lo$er costs
- Ne) to s(ccess is to achie!e lo$est cost among those competitors adopting similar
dierentiation' oc(s strateg).
+ierentiation=
(siness (nit concentrates on achie!ing s(perior perormance in an import c(stomer
#et$een area !al(ed #) a large part o the market.
E@ample=- #(siness (nit can stri!e to #e, One o=
- ser!ice leader. , T7S motors
- :(alit) leader. , amaha
- St)le leader. , 6one
- Technolog) leader. , Hero Honda
(siness (nit c(lti!ate those strengths that $ill gi!e it a competiti!e ad!antage in one or
more #eneits.
4oc(s=
- (siness (nit oc(s on one or more narro$ market gro(ps than going ater a large
market.
- (siness gets to kno$ special c(stomer gro(p*s needs and p(rs(es either cost
leadership or dierentiation $ithin targeted market gro(ps.
Strategic ro(p=
- 4irms p(rs(ing same strateg) directed to same c(stomer gro(p constit(te a strategicgro(p.
- 4irms that carries o strateg) #est $ill make more proits.
- 1ack o clear strateg) ,Middle-O-The-Road leads to poor proits.
Program 4orm(lation=
- Once principal strateg) is de!eloped detailed s(pporting programs need to #e $orked
o(t. E@=- O!erall Strateg) L Technological 1eadership.
Programs
o Make R " + stronger.
o ather technical intelligence.
o Train technical sales orce.
o Ad!ertise technical leadership.
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- Programs costs to #e e!al(ated.
- Cost eneit Anal)sis to indicate clearl) $hether program is &(stiied or not.
5mplementation=
- Program orm(lated needs to #e implemented eicientl).
- 4or this Mckinse) -S rame $ork or #(siness s(ccess.
)cki!se% 23S 4rame5ork=
- Hard$are or s(ccess
o Strateg)
o Str(ct(re
o S)stems
- Sot$are or s(ccess
o St)le
o Sta
o
Skillso Shared 7al(e
St)le = Emplo)ees share common $a) o thinking " #eha!ing.
Sta = Compan) has recr(ited capa#le people trained them $ell and assigned them
to right &o#s.
Skills = Emplo)ee ha!e skills needed to carr) o(t compan)*s strateg).
Shared 7al(es = Emplo)ees share similar g(iding !al(es related to their $ork.
Strateg) implementation is s(perior in companies $here sot$are elements are
present in addition to hard$are elements.
4eed#ack " Control=
- As a compan) implements its strateg) it needs track res(lts " monitor de!elopment
in internal " e@ternal en!ironment.
- En!ironment ma) =
e Sta#le.
E!ol!e Slo$l)' Predicta#l).
Change Rapidl)' 0npredicta#l).
O!erall en!ironment is likel) to change.
;
Str(ct(re
Shared
7al(es
Strateg)
Skills
Sta
S)stems
St)le
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- Hence compan) needs to re!ie$' re!ise its 5mplementation' Programs' Strateg)'
O#&ecti!es.
- Hence s)stem or eed#ack " control gains importance.
Ne) to organi%ational health=
- Compan)*s $illingness to e@amine changing en!ironment.- Adaptation o appropriate ne$ oals' Strateg)' Program' 5mplementation or
#eha!io(r.
- High perormance companies tr) to maintain !ia#le it $ith e!ol!ing en!ironment
thro(gh le@i#le #(siness strateg) planning.
PRODUCT LE0EL STRATEGIC PLANNING=
Task o an) #(siness is to deli!er !al(e to the market at a proit.
7al(e-+eli!er) process co(ld #e=
- Traditional.
- Competiti!e.
Traditional=
7al(e deli!er) process made o
- Making prod(ct-
+esign prod(ct.
Proc(re material.
Make prod(ct.
- Selling prod(ct
Price prod(ct. Selling price.
Ad!ertisement' Promotion o prod(ct.
+istri#(tion.
Ater Sales Ser!ice i.e. make the prod(ct and sell it.
- Marketing takes place in second hal o the process.
- Ass(mption is that compan) kno$s $hat to make " market $ill #() eno(gh (nits to
make proits or compan).
- orks $ell in shortage economies.
- 1o$er oc(s on :(alit).
4eat(res
St)le.
7al(e +eli!er) Process 5n Competiti!e En!ironment=
- Process made (p o=
- Strategic Marketing= Choose the !al(e.
C(stomer segmentation.
Market selection' 4oc(s' Tighting.
7al(e Positioning.- Tactical Marketing=
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Prod(ct de!elopment.
Ser!ice de!elopment.
Pricing.
So(rcing' Making.
+istri#(tion' Ser!icing.
- Comm(nicate 7al(e=
Sales orce.
Sales promotion.
Ad!ertising.
- Traditional process ma) not $ork in competiti!e economies $here choices are
a#(ndant.
- Hence >Mass Market? gets #roken (p into smaller markets each $ith its o$n #()ing
criteria.
- Smart competitor needs to #e s(ccess(l in s(ch markets.
Marketing Process=
)arketi! Process co!sists o'=
o Anal)%ing marketing opport(nities.
o +e!elopment marketing strateg).
o Planning marketing strateg).
o Managing marketing eort.
Product le$el strateic +la!!i!=
- Strategic Marketing=
Segmentation.
Targeting.
Positioning.
- Tactical Marketing
Prod(ct.
Price.
Place.
Promotion.
2;
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